5.11,5.14,5.19

tors in Prepare and purchases. ing merchandising transactions Instructions 4. Prepare ample-step income statement h. Prepare a single-step income statement Prepare a comprehensive income statement LO 2, 3) An inexperienced as for Huang Company made the following em 5195 refund to a customer for aty merchandise was debited to Sales Revenue los ited to Cash $195. ASTROomp hase of supplies was dichied to Inventory S180 and credited to Cash S1) A $215 sales discount was debited to Sales Revenue A cash payment of $20 for freight on merchandise purchases was achted to Freigh and credited to Cash $200. Freight-Ou y is Instructions TV Prepare separate correcting entries for each error, assuming that the incorrect entry is not of goods sold 511.000. Cruz prepis Computer (Omit explanations.) 3.12 (LOS) In 2000. Man Crux Company had net sales of $900,000 and cost of goede 2.000. Operating expenses were $225.000, and interest expense was 11,000. Cruze multiple-step income statement. Instructions a. Compute Cruz's gross profit. Compute the gross profit rate. Why is this rate computed by financial statement users? c. What is Cruz's income from operations and net income? d. Ir Cruz prepared a single-step income statement, what amount would it report for net incona e. In what section of its classified balance sheet should Cruz report inventory? Con n ising amounts and computers preferate E5.13 (LOS) Presented below is financial information for two different companies. Reed Company May Company $90,000 (d) (a) Sales revenue Sales returns Net les Cost of goods sold Gross profit Operating expenses Net income 87,000 56,000 5,000 102,000 (e) 41,500 (b) 15,000 (c) 15,000 Instructions a. Determine the missing amounts. b. Determine the gross profit rates. (Round to one decimal place.) we missing amount E5.14 (LO 5) Financial information is presented below for three different companies. Allen Cosmetics $90,000 Bast Grocery $ (e) 5.000 Corr Wholesalers $122,000 12,000 () (a) Sales revenue Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Income from operations Other expenses and losses Net income 86,000 56,000 95,000 (b) 38.000 24,000 18,000 15,000 (c) 4,000 (d) (h) 7,000 11.000 5.000 Instructions Determine the missing amounts. Prepare cost of goods sold section. 5.19 (LO 7) Below is a series of cost of goods sold sections for companies B, E. L. and R $1,000 $ 150 1,620 43,590 40 $ 70 1,060 (d) 1.030 (e) C) (a) 41.990 2,240 Beginning inventory Purchases Purchase returns and allowances Net purchases Freight-in Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 110 (b) 1,840 310 (c) 1,280 1,350 290 6,210 (h) 7,940 () 1,450 7,490 49.530 6,230 43,300 1,230 Instruction Fill in the lettered blanks to complete the cost of goods sold sections